Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether his Department has prepared an impact assessment on the decision to freeze the local housing allowance.

The Secretary of State considers a range of factors when reviewing Local Housing Allowance (LHA) rates. This includes the impact of the current rental market, the Government’s goals on housing, and the wider fiscal context. In April 2024, LHA rates were increased to the 30^th percentile of local market rents costing £1.2bn in 2024/25 and £7bn over 5 years. LHA rates have been maintained at 2024/25 levels for 2025/26. The impacts of this are described in the explanatory memorandum for the legislation:

The Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2025 - Explanatory Memorandum

The Secretary of State considers LHA rates annually in the Autumn. Autumn Budget decisions will be taken in the round, considering the Government’s missions and the challenging fiscal context.